Stock Watch : PCHEM (CW)

 

PCHEM-C1Z: With WTI crude pulling back to around USD101, downside pressure is likely to return to PCHEM. Expect the stock to turn red in the near term, as sentiment weakens alongside softer oil prices.

Why PCHEM Could Turn Red Again as Oil Pulls Back

After a strong run, PCHEM is showing signs of losing momentum — and the key driver right now is crude oil.

WTI crude has slipped back to around USD101, and that matters more than many retail traders realize. PCHEM, being a petrochemical player, is highly sensitive to movements in oil prices. When crude weakens, margins expectations often compress, and that quickly translates into selling pressure on the stock.

From the chart, PCHEM recently attempted to stabilize around the 25-26cents range, but the recovery looks fragile. The earlier rally was supported by stronger oil prices and improving sentiment. Now, with oil pulling back, that support is fading.

Technically:

• The stock is struggling to hold above 25cents
• Resistance remains near 30-32 cents
• Momentum indicators (like RSI) are not showing strong bullish continuation

This combination suggests that upside may be limited in the short term, while downside risk is increasing.

📉 What This Means for Traders

• Short-term bias: Bearish / cautious
• Watch for breakdown below RM0.25
• Oil price movement is the key trigger — not just the chart

note : I have sold my positions and will be watching to buyback BELOW 20cents. 

Disclaimer : Trading CWs carrying VERY high risk if you don't know how to manage it. 

TEH